visimoney
TLDR:
- Culture wars are hindering progress in fintech board diversity.
- Structural issues, lack of independent directors, and anti-woke sentiment are contributing to the problem.
Despite evidence that diverse boards perform better, the financial services industry is facing a backlash against diversity efforts. Women hold only a small percentage of private company board seats, and the lack of diversity extends to women of color as well. Structural issues such as homogeneity among investors and entrepreneurs and vacant independent director seats are inhibiting progress. While there has been some incremental improvement, the rate of change is slow. Mention of ESG and DEI initiatives on earnings calls is down, suggesting a decrease in focus on diversity. The difficult economic climate and pressure on investors may be contributing to this trend.
However, the business case for diversity is clear, with diverse boards outperforming financially. Despite the current culture wars, leaders in the industry recognize the importance of diversity for business success. By neglecting diversity measures, board members risk underperformance and potential accusations of negligence. As the political polarization continues, fintech companies have an opportunity to lead the way in shaping a more inclusive finance culture in the new economy.
